The United States has different forms of bankruptcy laws for both federal purposes and state purposes. When filing for bankruptcy these differences come into play. In the terms of a Chapter Seven case, Alaska has exemptions for bankruptcy that will determine which assets can be kept. After bankruptcy is filed in the state of Alaska these exemptions will be the determination of which assets are to be possessed. These can include large items, such as a car or a house. A bankruptcy trustee will sell the necessary items to pay creditors after the bankruptcy exemptions have been determined and category limits have been assessed. All bankruptcy forms in Alaska are to be filed to the correct bankruptcy court in a specific area.
Alaska Law
Filing bankruptcy in any state can be difficult due to specific bankruptcy law that are exact and can cause problems when filing. Alaska is no exception. Many people choose to file for bankruptcy through do-it-yourself forms so they do not have to deal with a professional, but this can cause problems. Alaska has new laws for filing bankruptcy, so those who have filed before or those who are seeking to file in the near future can run into problems from inexperience. Most do-it-yourself forms will not be accepted because they have not been completed correctly according to the new Alaska laws. Bankruptcy forms have multiplied in size for personal purposes in the past few years so the act of discharging any debt is far more complicated than it has been in the past.
Bankruptcy Companies
Rather than relying on do-it-yourself methods of bankruptcy, new ways of filing have arrived through the Internet. Now bankruptcy can be filed through online services by using full-service companies. Chapter Seven forms and Chapter Thirteen forms for personal bankruptcy include the debt of a person rather than a business or corporation. Chapter Seven forms can be filed online as a joint filing through a husband or wife or as a sole individual. This kind of bankruptcy also handles the debt that has been acquired through any form of consumer debt, such as personal loans, credit cards, medical bills, and others.
The new Alaska law for bankruptcy requires that all those who want to file for bankruptcy take a ninety-minute credit counseling class before any files can be processed. Urgent circumstances can apply and exempt individuals from the necessity of the class. This credit counseling class needs to be taken prior the commencement of any bankruptcy forms or filing. It is recommended that all the proper documents be prepared and at hand before attending the class so that an individual may know in advance if he or she is eligible for bankruptcy. If he or she is not eligible, attending the ninety-minute class will be useless.
After Filing
Within a month of filing for bankruptcy, every individual must attend a short creditor meeting. The new law also states that a second ninety-minutes class be attended after filing. A discharge notice will then be sent from the bankruptcy court approximately five months after all documents have been filed. This discharge is a formality of debt freedom because debt freedom actually begins automatically after filing.